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District Member
Town Hall Meeting
November 2, 2016
Agenda
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Welcome and Introductions
Background
Budget & Service Plan
Application and Approval
Q&A
Next Steps and Closing
District Background
• The Dallas Tourism Public Improvement District is
modeled after similar successful initiatives around
the country.
• It is designed to significantly increase the funding
available to market and provide incentives to
enhance Dallas’ performance as a convention and
tourism destination.
District Background
• The District is funded by hotel properties in Dallas
city limits with 100 or more rooms through a 2%
assessment on occupied rooms.
• The District is managed by a ten member board of
directors, made up of participating hoteliers.
• 3 from properties with 1000+ rooms
• 3 from properties with 301-999 rooms
• 4 from properties with 100-300 rooms
District Background
• Collections for the DTPID began in August 2012
and may continue for 5 years.
• It was recently renewed for another 13 years.
• Budgets are approved annually by the city.
• Funds are administered by the Dallas Convention
& Visitors Bureau through a contract with the
DTPID Board of Directors.
District Budget
Incentives & Sales Efforts
Marketing (Promotion/Advertising)
Site Visits & Familiarization Tours
Event Funding Application Pool
Operations/Research/Administration
Total Expenses
42.5%
35.0%
10.0%
07.5%
05.0%
100.00%
Dallas Tourism Public Improvement District
Budget Allocations Summary
Incentives & Sales Efforts
Marketing (Promotion/Advertising)
35.0%
42.5%
Site Visits & Familiarization Tours
Event Funding Application Pool
10.0%
Operations/Research/Administration
Projected Growth Rate
Petition Categories
Incentives & Sales Efforts
Marketing (Promotion/Advertising)
Site Visits & Familiarization Tours
Event Funding Application Pool
Operations/Research/Administration
15.0%
2017
Estimated
Allocation
42.5%
35.0%
10.0%
7.5%
5.0%
$
$
$
$
$
7,024,645
5,785,002
1,652,858
1,239,643
826,429
5.00%
2018
Estimated
$
$
$
$
$
7,375,877
6,074,252
1,735,501
1,301,625
867,750
5.00%
2019
Estimated
$
$
$
$
$
7,744,671
6,377,964
1,822,276
1,366,707
911,138
5.0%
5.00%
2020
Estimated
$
$
$
$
$
8,131,905
6,696,863
1,913,389
1,435,042
956,695
5.00%
2021
Estimated
$
$
$
$
$
8,538,500
7,031,706
2,009,059
1,506,794
1,004,529
5.00%
2022
Estimated
8,965,425
7,383,291
2,109,512
1,582,134
1,054,756
$
$
$
$
$
9,413,696
7,752,456
2,214,987
1,661,240
1,107,494
5.00%
2024
Estimated
$
$
$
$
$
9,884,381
8,140,078
2,325,737
1,744,302
1,162,868
5.00%
2025
Estimated
5.00%
2026
Estimated
5.00%
2027
Estimated
5.00%
2028
Estimated
5.00%
2029
Estimated
13 - Year
Total
$ 10,378,600 $ 10,897,530 $ 11,442,406 $ 12,014,527 $ 12,615,253
$ 8,547,082 $ 8,974,436 $ 9,423,158 $ 9,894,316 $ 10,389,032
$ 2,442,023 $ 2,564,125 $ 2,692,331 $ 2,826,947 $ 2,968,295
$ 1,831,518 $ 1,923,094 $ 2,019,248 $ 2,120,211 $ 2,226,221
$ 1,221,012 $ 1,282,062 $ 1,346,165 $ 1,413,474 $ 1,484,147
$
$
$
$
$
124,427,415
102,469,636
29,277,039
21,957,779
14,638,519
100.0% $ 16,528,576 $ 17,355,005 $ 18,222,755 $ 19,133,893 $ 20,090,588 $ 21,095,117 $ 22,149,873 $ 23,257,367 $ 24,420,235 $ 25,641,247 $ 26,923,309 $ 28,269,474 $ 29,682,948
$
292,770,388
Note: Expenditures are limited to actual collections, which can not exceed the 2% fee on each occupied room as defined in the petition.
$
$
$
$
$
5.00%
2023
Estimated
7.5%
District Service Plan Notes
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10-to-1 Return on Investment
5% assumed annual growth
1% assumed reserve fund investments growth
1.
Assessment collections are higher than originally anticipated due to
increased occupancy at the hotels that comprise the District.
2.
Incentive funds are committed to future scheduled events. These
funds will not be expended until the event occurs.
Individual Hotel
Application Program
Program Overview
• The Individual Hotel Incentive Program is designed
to provide DTPID participating hotels the
opportunity to apply for funding to attract additional
in-house meetings to their properties.
• As with all other DTPID expenditures, the program
is subject to 10-to-1 return on investment (hotel
room night revenue generated).
Program Overview
• Program limited to 5% of DTPID budget annually.
• Properties limited to $50,000 annually.
• Only DTPID participant hotels are eligible.
• Limited to single property events.
• Events receiving other DTPID funds are ineligible.
Program Overview
• Limited to events using 25% or more of applicant
property’s room inventory at peak.
• Limited to events with $7,500+ in lodging revenue.
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Distribution (approximate) based on hotel size:
1000+ rooms 0%
301-999 rooms 16%
100-300 rooms 84%
Process
• Identify target meetings/groups (not currently booked):
• New - incentive to attract new business
• Retention - incentive to retain or grow existing business
• Forecast potential room lodging revenue:
room block x room rate
Process
• Submit application 60 days prior to event.
• Approval subject to funding availability and
acceptance by program administrator.
• Submit final report within 30 days after event.
• Reimbursement payment will be made within 30 days
of receipt and acceptance of final report.
Example
• Corporate group considering Dallas area meeting
in June of 2017.
• Up to 50 rooms for 3 nights.
• Incentive could help DTPID hotel win business
from non-participating hotels and properties
outside city limits.
• Multiple properties may apply, but only one win.
Example
• Forecast potential room lodging revenue:
• 50 rooms x 3 nights x $159 room rate = $23,850
• 10-to-1 ROI requirement:
• $2,385 maximum funding available
Example
• Submit application and receive approval from
program administrator.
• After event submit final report showing actual
lodging revenue.
• Reimbursement will be amount originally approved
or 10% of actual lodging revenue, whichever is less.
Q&A
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